Agreement signed between AlHuda Pakistan and Vision Fund AzerCredit Azerbaijan in Baku

(Baku- Azerbaijan) An agreement for the advancement of Islamic microfinance was signed between AlHuda Centre of Islamic Banking and Economics and Vision Fund AzerCredit in a splendid ceremony at the capital of Azerbaijan, Baku. According to the agreement, AlHuda CIBE will conduct market research in different cities of Azerbaijan including Baku to formally initiate Islamic microfinance in Azerbaijan. Mr. Zubair Mughal, Chief Executive Officer, of AlHuda Centre of Islamic Banking and Economics and Mr. Sameer Jaffer Ali, Deputy Chairman Board of Directors, of Vision Fund AzerCredit signed the agreement.

While addressing the agreement ceremony, Mr. Sameer Jaffer Ali said that this agreement is a milestone for the foundation of Islamic microfinance in Azerbaijan. It will lead to the commencement of micro and SME finances based on Islamic principles. He said that Azerbaijan is a country with 99% Muslim population and its people have been waiting for Islamic finance for quite a long time. This agreement is the first step towards fulfilling their financial needs according to Islamic principles. He said that through research reports we will get the realistic and pragmatic information on Islamic finance’s requirement in Azerbaijan, keeping in view public needs and demands, Vision Fund AzerCredit will introduce Islamic Microfinance products in the Azerbaijan market.

Muhammad Zubair Mughal, Chief Executive Officer, of AlHuda Centre of Islamic Banking and Economics, while addressing the ceremony said that Azerbaijan will prove to be a good market for Islamic finance products as there is a high public demands for these products and it will further increase in the coming days. He, referring to his research in the different cities of Azerbaijan (Goycey, Sabirabad, Mislli etc.), said that there is very high demand of Islamic finances in rural and semi-urban areas and people were happy and excited when they learned about Islamic microfinance. Moreover, he said that legal and revolutionary amendments are required for the advancement of Islamic finances in Azerbaijan. It’s hoped that in coming days this issue will be sorted and Islamic retail banking will start in an effective manner. Approximately 10 Islamic finance institutions, including one government bank, are providing Islamic finance facilities at corporate level, which is a luminous illustration of Islamic banking and finance in Azerbaijan.

It should be noted that AzerCredit is the second largest microfinance institution in Azerbaijan, which is providing its services in 18 regions of the country through its network of 56 branches. AlHuda CIBE is a Pakistani organization which is performing Islamic finance research services in difference countries. Particularly for the progress of Islamic microfinance, it established a specialized Department, AlHuda Centre of Excellence in Islamic Microfinance, which is providing its services for the development of Islamic Microfinance Globally.